Deployment of Interest Calculator in GSTR-3B

26/01/2022

GST

10% TDS on benefits and shares given to directors

• Jun 18, 2022

• Allotment of shares to directors, providing cars to them, and a sponsored business trip or conference by a company will attract 10% tax deducted at source (TDS) from July 1.The Central Board of Direct Taxes (CBDT) on Thursday issued a detailed guidelines on deduction of tax at source under Section 194R of the Income Tax Act. It requires deduction of TDS at the rate of 10% by any person providing any benefit or perquisite, exceeding ?20,000 in a year to a resident.

  
  
  

Tax Deduction at Source

Net direct tax mop-up rises 45% to over Rs 3.39 lakh cr till mid-June

Jun 18, 2022

Reflecting an uptick in economy, net direct tax collections between April and mid-June jumped 45 per cent to over Rs 3.39 lakh crore, the Income Tax department said. The improved collections are mainly due to a 47 per cent growth in TDS mop-up and a 33 per cent rise in advance tax realisation for April-June quarter.
The net direct tax collection of over Rs 3.39 lakh crore included Corporation Tax (CIT) of over Rs 1.70 lakh crore and Personal Income Tax (PIT), including Security Transaction Tax (STT), of more than Rs 1.67 lakh crore.

Income Tax

How TDS on crypto, virtual digital assets will work from July 1, 2022

• Jun 24, 2022
  
  

• The Central Board of Direct Taxes (CBDT) issued a circular on June 22, 2022 explaining how tax will be deducted on transfer of virtual digital assets (VDA) and cryptocurrencies. The new rules of TDS on VDA and crypto will come into effect from July 1, 2022. What does the law on TDS on VDA, crypto say?
  As per the new law, the purchaser of a virtual digital assets (VDA) is required to deduct 1% of the amount paid to the seller ( resident Indian) as income tax deducted at source (TDS). The tax is required to be deducted at the time of credit of amount or at the time of payment to the resident individual, whichever is earlier. The tax will be deducted only if the amount paid exceeds the specified limit, stated CBDT.
  Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, "Effective from July 1, 2022, any person (resident individual, non-resident individual or Exchange) making payment to resident individual at the time of buying crypto, VDA or NFT (as notified by the govt), will be required to deduct TDS on the amount paid at the rate of 1%.

Tax Deduction at Source

Banks to move government on TDS on loan waivers

• Jun 28, 2022

Banks will soon move the government as they find themselves caught in the tax net while settling and rejigging loans to give distressed borrowers a second chance. Slices of loans waived to lessen the strain on defaulting borrowers are being interpreted as 'benefits' that lenders are passing on to borrowers under the new provisions the government has come out on tax deducted at source (TDS). Even though there is no transfer of cash from the bank to the borrower, the extent of haircuts taken by lenders is imputed as 'income' for the borrower.

Tax Deduction at Source

Foreign investors worried over new Mauritius tax angle on PE funds

• Jun 29, 2022
  Foreign investors betting on India by putting money into private equity (PE) funds here are taken aback by a recent observation by the Mauritius Revenue Authority (MRA), raising a hitherto ignored angle on tax – and in the process questioning investment structures that have been in vogue for years.According to a private ruling by MRA, investment vehicles in Mauritius, used by global investors to enter India, will have to pay tax in Mauritius on ‘capital gains’ they receive from a PE or debt fund in India when the latter exits an investment. Till now, a Mauritius entity paid tax to the Mauritius government only on ‘income flows’, like dividends and interest distributed by funds in India --- but not on capital gains booked in India.

• However, MRA, in a matter related to a global investor, has ruled that “all income distribution” made by AIF (alternative investment funds) Category II and III “will be treated as dividend income and therefore not retain their initial characteristics”.

General

Crypto Tax: Who will deduct 1% TDS from July 1 – buyer or cryptocurrency exchange?

• Jun 29, 2022
  
  

• Crypto trading is going to be difficult in India from next month. The 1% TDS rule for cryptocurrency and virtual digital assets (VDAs) transactions will come into effect from the 1st of July 2022. The Central Board of Direct Taxes (CBDT) recently released guidelines explaining who will be responsible for deducting TDS in different types of transactions.

Tax Deduction at Source

TDS on crypto, VDAs: CBDT issues new circular on peer to peer transactions

• Jun 30, 2022

• The Central Board of Direct Taxes (CBDT) given clarification regarding how the tax will be deducted (TDS) on peer-to-peer transactions related to buying/selling of Virtual Digital Assets (VDAs) and crypto under section 194S of the Income-tax Act, 1961. Peer-to-peer transactions are those transactions where buying and selling have taken place without the involvement of a third party (E.g., an exchange).
  As per the latest circular issued on June 28, 2022, "According to section 194S of the Act, any person who is responsible for paying to any resident any sum by way of consideration for transfer of VDA is required to deduct tax. Thus, in a peer-to-peer (i.e., buyer to seller without going through an Exchange) transaction, the buyer (i.e., person paying the consideration) is required to deduct tax under section 194S of the Act."

  
  
  

Tax Deduction at Source